The holiday season brings plenty of to-do lists. There are countless gifts to buy, meals to prepare and parties to host, but before the year wraps up, it’s worth adding a quick check-in on your financial picture too.
December 31st isn’t just the end of the calendar year. It’s also a deadline for several financial decisions that can impact your 2026 taxes and retirement trajectory. Before the ball drops, consider these questions:
Have You Taken Your Required Minimum Distributions (RMD)?
For those 73 and older, the IRS requires a minimum withdrawal from your tax-deferred retirement accounts each year. Miss this threshold, and you could face a 25% penalty tax on whatever you failed to withdraw.
It’s also worth considering whether there are strategies to reduce your RMD burden in the future. Having a conversation with your financial planner sooner, rather than later, is the best way to avoid being pushed into a higher tax bracket.
Is This the Year for a Roth Conversion?
Converting traditional IRA funds to a Roth can provide tax-free withdrawals in retirement, but the details matter. Your goal should be to stay within your current tax bracket while still making meaningful progress.
For example, if you are single and will earn $180,000 this year, you fall into the 24% tax bracket, which ranges from $103,351 to $197,300 for tax year 2025. That means you can convert up to $17,300 ($197,300 – $180,000) without being pushed into the next bracket and paying higher federal income taxes.
Whether a conversion makes sense depends on your income, your other deductions, and your expectations for future tax rates. It’s best to consult with a financial advisor before making any big decisions.
Are Your Retirement Contributions on Track?
If you’re still working, the end of the year is a natural time to review whether you’re maximizing your retirement contributions. Here are three key questions we recommend talking over with your investment advisor:
- Are you capturing the full employer match?
- Could you increase your contributions for the final months of the year?
- Are catch-up contributions part of your strategy?
These decisions compound over time. A few adjustments now can make a meaningful difference down the road.
The Value of a Year-End Review
None of these questions have universal answers. What makes sense for your neighbor or your colleague may not make sense for you. The right strategy depends on your unique situation, your income, your goals, your comfort level, and your vision for retirement.
What matters is taking the time to ask the questions before the window closes.
If any of these topics sparked a “I should probably look into that,” let’s talk before the year ends. A brief conversation now could save you from missed opportunities later.
At Secured Retirement, we’re here to help you maximize your earnings and save on taxes so you can live the retirement of your dreams.
Give us a call at 952-460-3290.
